Trump Administration Moves to End $3.6 Billion Medicare Drug Subsidy

The administration is targeting a program that provides $3.6 billion in subsidies to insurance companies this year, according to the Wall Street Journal. These funds are used to moderate premium increases in Medicare prescription drug plans, known as Part D.

Part D coverage serves roughly 25 million Americans. The move would mean that those enrollees will see 2027 rate announcements in the fall without the subsidy cushion. Forecasts suggest around 75% of Part D plan holders could face higher premiums as a result.

Medicare policy remains a priority for the administration, which has signaled further changes to federal healthcare spending.